Nigerian Banking Sector Sees $7.55bn Capital Inflows

In the first quarter of 2026, Nigeria's banking sector experienced a significant influx of $7.55 billion in fresh capital, representing an 83.80% increase compared to Q1 2025. According to analysts from Meristem Securities, this surge is primarily driven by enhanced foreign participation in the local banking system, which serves as the main gateway for capital inflows.

The total capital import reached a record $10.37 billion, with $2.43 billion attributed to the banking sector alone. The report indicates a shift in investor preference towards short-term instruments rather than long-term infrastructure investments.

The growth in capital inflows contributed 3.76% to the GDP, with foreign portfolio investments aligning with the Central Bank of Nigeria's open market operations. The demand for short-term high-yield instruments remains robust, with total subscriptions reaching N3.28 trillion.

Additionally, the Central Bank of Nigeria approved Abbei Mortgage Bank Plc to transition to full commercial banking operations by Q4 2026, which will involve a capital raise of N264 billion to meet tier 2 capital requirements.